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Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 200 pounds at $3.00 per pound $600 Actual: 220 pounds at $2.85 per pound $627 Direct labor: Standard: 400 hours at $15.00 per hour 6,000 Actual: 368 hours at $16.50 per hour $6,072 What is the journal entry to record labor variances?

Respuesta :

Answer:

Labor Rate Variance:

= Actual direct labor hours × (per actual direct labor hour price - per Standard direct labor hour price)

= 368 × (16.50 - 15)

= $552 U

Labor Efficiency Variance:

= Per Standard direct labor hour price × (Actual direct labor hours - Standard direct labor hours)

= 15 × (368 - 400)

= $480 F

The journal entry to record labor variances is:

Work in process A/c       Dr. $6000

Labor rate variance A/c   Dr. $552

To Labor efficiency variance                $480

To Payroll                                               $6,072

(To record labor variances)